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Amid the rise in polls in favor of former President and Republican candidate Donald Trump over Vice President Kamala Harris, expectations for a further recovery in the Bitcoin price have soared, but the late September rally and first weeks of October has faded, with experts attributing this to tightening financial conditions that could impact the broader crypto market.
How Trump’s Campaign and Rising Yields Affect Bitcoin Price
According to a recent Bloomberg reportBitcoin’s association with Trump is becoming increasingly clear as global markets react to his potential return to the White House.
Nevertheless, the financial landscape is changing, with rising bond yields and a strengthening dollar coinciding with Trump’s lead in the prediction markets. Experts expect that a Trump victory could usher in a pro-growth economic agenda that would tighten monetary policy.
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Market analysts, such as Tony Sycamore of IG Australia Pty, highlight that the current sell-off in stocks and a stronger US dollar and rising interest rates signal of tightening financial conditions.
The analyst explains that this environment is generally unfavorable for the Bitcoin price and the broader stock crypto marketwhich typically thrives in more liquid market conditions.
Sycamore went on to say that while initial monetary conditions were already loose, the speed of the tightening poses a significant threat to the Bitcoin price and other risky assets as Trump becomes more likely to secure another term in the Oval Office.
Relaxation of regulations under Trump’s return?
Trump’s campaign has openly embraced the cryptocurrency sector, promising to position the US as the “crypto capital of the world.” His approach is in stark contrast to Harris’ more cautious stance, which involves supporting a regulatory framework to promote industry growth while ensuring consumer protection.
The recent Bloomberg News/Morning Consult poll shows that Trump and Harris are statistically tied among likely voters in key swing states, suggesting the upcoming election could depend on targeted advertising, rallies and grassroots efforts – which all could influence the elections. market sentiment.
In the crypto market, investors are increasingly betting on a potential victory for former President Donald Trump on Polymarket. Current polls show Trump leading with 62% support, compared to 38% for Vice President Kamala Harris as of Thursday, marking the largest margin since the race began.
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Should Trump win the upcoming election, Bloomberg notes that experts predict a potential rise in interest rates, which could negatively impact risky assets, including Bitcoin’s price performance.
Caroline Mauron, co-founder of Orbit Markets, points out that while higher yields can pose challenges, the expected ones relaxation of regulations under a Trump administration could be critical in shaping the crypto landscape.
Despite potential economic challenges that could negatively impact BTC’s performance, Mauron concludes that the regulatory shift could support Bitcoin and other digital assets in regaining their footing.
At the time of writing, Bitcoin is trading at $67,670, up 2.4% in the last 24 hours.
Featured image of DALL-E, chart from TradingView.com
Credit : www.newsbtc.com
